Egypt is commitment towards continuing the structural reforms to create a conducive environment for investment, expand in providing incentive packages to scale up the private sector’s engagement in the development process, and boost sustainable growth rates, according to the Minister of Finance, Mohamed Maait
Supporting exporters
During the forum organised by the Canada-Egypt Business Council headed by Moataz Raslan on Tuesday, the minister said that the government has adopted several initiatives to support economic activities, including the payment of EGP 28 billion in overdue subsidies owed by the Export Development Fund to exporters from March 2020 to June 2021, according to a statement.
The state budget for fiscal year (FY) 2021/2022 allocates EGP 8 billion for supporting exports which will help provide the needed cash liquidity to maintain the continuity of production and job creation amid the COVID-19 pandemic, Maait noted.
A total of EGP 500 million has been allocated to support exporters of vehicles in Egypt in a move that reflects the government’s commitment towards supporting the export sector and improving the competitiveness of Egyptian products in international markets
Public investments
Moreover, the ministry allocated EGP 358 billion in FY20/21 to finance public investments, establish national projects, improve infrastructure, stimulate economic activities, and contribute effectively to achieving developmental objectives, improving the living standards of citizens, and enhancing services provided to them.
No intention to impose new taxes
The government has no intention to impose new taxes, but rather seeks to finance the budget through enhancing governance, raising the efficiency of the tax collection process, and expanding the tax base by integrating the informal economy into the formal sector through expanding in using technology solutions, Maait pointed out.
The tax and customs systems will be automated and modernised to streamline and digitise the procedures with the aim of using artificial intelligence (AI) in 2022 to ensure that all transactions are monitored. Through the electronic invoicing system, a total of 1,700 tax evasion cases have been discovered with total taxes dues worth EGP 3 billion owed to the state treasury.
The first phase of the electronic receipt system will be implemented in six months by establishing a central system enabling the Egyptian Tax Authority (ETA) to monitor all commercial transactions in real time.
Economic growth beat expectations
The Egyptian economic growth has exceeded all expectations of international institutions registering 3.3% of the gross domestic product (GDP) in FY20/21, while the overall budget deficit fell to 7.4% from 12.5% in FY15/16.
The country achieved a primary surplus of about 2% before the pandemic from 3.5% in FY15/16 and the annual revenue growth rate increased by 12.2%.
